Enduring Power of Attorney and General Power of Attorney

Note: Not every State or Territory has the same definition for Enduring and General Power of Attorney. Some include Health as part of it. It’s important to go to the State/Territory to confirm. A lawyer can always help you out with it.

What is an Enduring Power of Attorney?

An Enduring Power of Attorney is a legal representative that a person can appoint in advance to manage their assets and financial matters on their behalf. This role can become part of the caring role if the person you care for is no longer able to make certain decisions for themselves due to impaired capacity. It does not mean that a person will lose control over their financial affairs, but gives an attorney formal authority to manage a person’s financial affairs according to their instructions.

What is the difference between a General Power of Attorney and an Enduring Power of Attorney?

A General Power of Attorney gives the legal ability to act on someone else's behalf in financial matters such as paying bills and managing money if for any reason they are unable to manage financial matters themselves. For example, a daughter may be caring for her frail mother who has mobility difficulties and can no longer go to the bank to pay her bills. Her daughter, with Power of Attorney, can pay her mother's bills on her behalf – often online.

A General Power of Attorney can no longer be used once a person can no longer make decisions or act on their own. This is where an Enduring Power of Attorney comes in. An Enduring Power of Attorney can be used when a person has ‘lost capacity’, but must be appointed beforehand.

‘Capacity’ is the ability to make decisions and understand the effects of those decisions. A person is said to have capacity when they understand the information and choices presented, weighing up the information to make a decision and then communicating that decision. A person who can't follow this process and communicate decisions is said to lack capacity.

How a Power of Attorney can be used

A person can decide how much power or authority to give an attorney. They may want them to have the same powers they would with their money or property. They may want to limit the powers of their attorney to very specific tasks e.g. paying certain bills or selling their house.

An Enduring Power of Attorney cannot make lifestyle, accommodation or medical decisions and is limited to financial or property; only an Enduring Guardian can make lifestyle decisions on someone else’s behalf.